NEW YORK (Bloomberg) -- Tesla Motors Inc., the electric-car maker that has seen its stock advance more than sevenfold in the past year, is offering $1.6 billion of convertible senior notes to help fund a battery factory.

Tesla, which plans to announce details of the gigafactory to produce batteries for more affordable electric vehicles, will use the proceeds for the project and to accelerate the growth of its business in the United States and internationally, according to a statement.

Tesla will offer $800 million of notes due 2019 and $800 million due 2021, the company said Wednesday.

The Palo Alto, California-based company plans to grant the underwriters a 30-day option to purchase as much as an additional $120 million due in 2019, and an additional $120 million, due in 2021, for a total potential offering size of up to $1.84 billion.

The company's shares rose 2 percent to a record $253 at the close in New York trading on Wednesday.